Fed Has Nowhere to Run to, Nowhere to Hide -- Gordon T. Long #6023

What this episode covers

Gordon and Kerry discussed the performance of the S&P 500 and its fluctuations due to COVID-19. They also explored the potential risks and impacts on the equities market, the role of Treasury Secretary Yellen in managing market liquidity, and the consequences of tighter credit and looser financial conditions. Additionally, they compared Gross Domestic Product (GDP) and Gross Domestic Income (GDI), highlighting the discrepancies and the impact of inflation on GDI. Finally, they examined the current state of the U.S. economy, expressing concern over the growing national debt and the continuous reliance on credit. S&P 500, Gold, and Bitcoin Performance Discussion Gordon and Kerry discussed a chart that depicted the performance of the S&P 500, highlighting its fluctuations and the impact of COVID-19 on its trajectory. Gordon emphasized the narrowing of the S&P 500 and the possibility of it going parabolic. He also pointed out a significant point at 51,86, which was reached and then immediately pulled back, suggesting a potential risk. Kerry brought up the importance of considering gold and Bitcoin's behavior. Gordon concluded by cautioning that they were at a major junction and it might be time to reassess the risk, given that the last 5% could be catastrophic. He also mentioned the possibility of a correction back to the pre-COVID high. Gordon and Kerry discussed the current state of the equities market, expressing concern about potential risks and the possibility of a market downturn. They highlighted inflation as a potential trigger for a market correction and discussed the role of Treasury Secretary Yellen in managing market liquidity. They also discussed the impact of the Inflation Reduction Act and the potential consequences of tighter credit and looser financial conditions. Gordon compared the current situation to historical market trends and predicted corrections and attempts at a rally. GDP and GDI Discrepancies Under Bidenomics Gordon and Kerry discussed the discrepancies between Gross Domestic Product (GDP) and Gross Domestic Income (GDI). Gordon highlighted that the gap between the two has widened under Bidenomics, with GDI increasing due to inflation but not reflecting the money spent on expenditures. Gordon emphasized that the GDP formula includes borrowed money, referred to as investment income, which is contributing to the inconsistencies between the two figures. They concluded that there was a significant issue that needed to be addressed. U.S. Economy and Alternative Investments Discussed Gordon and Kerry discussed the current state of the U.S. economy. Gordon expressed concern over the potential flaws in the system, particularly the growing national debt and the continuous reliance on credit. He also noted the correlation between the yield on a 30-year bond and the growth in the GDP. Gordon further pointed out the increasing interest in gold and Bitcoin as an alternative to the U.S. dollar, suggesting that the central banks are buying gold and some major players are starting to invest in it. Kerry's opinion on this matter was not captured in the discussion. Statistics and Newsletter Discussion Kerry and Gordon discussed some statistical data about a certain issue, with Gordon presenting charts to illustrate his points. Kerry agreed with Gordon's conclusions and suggested that the charts could be found on Gordon's website, matzi.com, where a free weekly newsletter is also offered. Kerry also invited questions and comments via email and encouraged listeners to sign up for the newsletter. The possibility of Gordon returning for another discussion was also mentioned. Visit Gordon here: matasii.com Find Kerry here: FSN and here: <a href="https://inflation.cafe" target="_blank" rel="noreferrer...